So, if there is a balance allocated to the lump sum remaing to be applied to the month missing payments, based at fair market rents, you may be sunk as your pre-paid rents are your liability to provide housing.

The cycle of this and length of time varies by local market on a micro scale and then also by national factors on a macro scale.When the markets recovers these high appreciation markets attract speculators that drive prices up.When they also leave the market it drives prices way down.So California,New York etc. you have wild swings in value whereas say in Georgia we slipped in value as well but prices were not as extreme.Investors like cash flow because it is an immediate quantifiable income.Appreciation is a crystal ball speculative investment that you hope grows faster than inflation every year.I will say there is only so much land to build on for high density areas.So if you make a bunch of money at your job and have reserves than it could be a great long term appreciation play plus rents could rise at a fast clip.You have to remember every investor has a different plan.The investors who are my clients think differently based on a different set of goals and how they want to allocate time.

I've found it really depends on your communication level with tenants and honestly just varies year to year based on the kids.Splitting utilities could change the NOI pretty easily especially if you live there it would be easy to allocate utilities to tenants.

@Kyle Lewis I've definitely always seen this below the line - capital expenditures (or allocation for capital reserves) definitely isn't part of the NOI.I've also seen compelling arguments from folks in the corporate finance world for why capital reserves should NOT be included when using the term "cash flow".  

I might have been slightly conservative in my estimates, but typically I allocate 5% of EGI towards R&M, 5% towards CapEx, 8% towards management, and 5% towards vacancy. 

Profits earned will be allocated to a 529 college savings account in their name.  

And the ARV could be around $110k to $120k.After the house is rented out, I'd like to get an equity loan on the house for $70k and do the same process again.Of course I've considered the cost of renovations to be between $10k to $15k and allocated a portion of my budget for this.

My CapEx is indeed on the conservative side and I haven't gone through the home inspection but I think $100 would actually be re-allocated to Lawn/Snow and set it at $200.The reason I am jumping on this particular deal is because I could be getting the house at the appraised value minus 6% (because we aren't paying realtor commissions if he sells to me).

When you buy multi family apartments how do you figure out how much to allocate for capex?

You still don't really get additional deduction benefits, but the allocation of profit/losses is where its required.